Question

Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid.

Date	Price	Dividend
Jan 1	$31.79	−
Feb 5	$32.58	$0.21
May 14	$28.99	$0.21
Aug 13	$32.19	$0.22
Nov 12	$37.35	$0.19
Dec 31	$42.82	−

The return for the entire period is ____ %.

(Round to two decimal places.)

Answer 1

Return for Period 1 =(Ending price-Beginning Price+dividend)/Price beginning =(32.58-31.79+0.21)/31.79 =3.1456%
Return for Period 2 =(Ending price-Beginning Price+dividend)/Price beginning =(28.99-32.58+0.21)/32.58 =-10.3475%
Return for Period 3 =(Ending price-Beginning Price+dividend)/Price beginning =(32.19-28.99+0.22)/28.99 =11.7972%
Return for Period 4 =(Ending price-Beginning Price+dividend)/Price beginning =(37.35-32.19+0.19)/32.19=16.6201%
Return for Period 5 =(Ending price-Beginning Price+dividend)/Price beginning =(42.82-37.35+0)/37.35=14.6452%

Return for entire period =(3.1456%-10.3475%+11.7972%+16.6201%+14.6452%)/5 =7.17%